Taco Bell
investment property offering
Taco Bell
*actual photo
846 Highway 51 North | Ripley, TN | 38063
Shawn Bakke Senior Vice President License No. 01326433 213.532.3282 [email protected]
Gregory Ching Project Coordinator 213.532.3209 [email protected]
865 S. Figueroa Street Suite 3500 Los Angeles, CA 90017 213.627.1214 www.colliers.com
Confidentiality & disclaimer Taco Bell
This Offering Memorandum contains select information pertaining to the business and affairs of Taco Bell. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole
discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Taco Bell or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
865 S. Figueroa Street, Suite 3500 Los Angeles, CA 90017 P: 213.627.1214 www.colliers.com
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colliers international
Table of Contents Executive Summary
5
›› Pricing Summary ›› Investment Highlights
Financial Analysis
7
›› Financial Summary ›› Cash Flow Analysis
Tenant Overview
10
›› Tenant & Lease Summaries
Property Overview ›› ›› ›› ›› ››
Site Summary Property Photos Adjacent Property Photos Property Aerial Local & Regional Maps
Market & Area Overview ›› Demographics ›› Area Description ›› On the Market Comparables
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colliers international
13
19
Executive Summary
Pricing Summary Property
Taco Bell
Property Address
846 Highway 51 North | Ripley, TN
Building Size (SF) Lot size (Acres) Year Built Price / price psf Down Payment Cap Rate / pro forma (2016) average cap during lease leveraged irr
2,079 0.66 1999 $954,416 / $454.75 $390,365 8.00% / 8.64% 9.01% 17.01%
Proposed Financing - First Trust Deed Loan Amount Loan Type Interest Rate Amortization Program Loan to Value
$567,250 Proposed New 6.10% 25 Due in 5 60:40
Annualized Operating Data Base Rent - Occupied Space Net Operating Income Debt Service Net Cash Flow After Debt Service Principal reduction Total Return
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colliers international
$75,633 $75,633 ($44,797) $30,837 / 8.15% $10,194 $41,031 / 10.85%
Investment Summary Colliers International presents a 2,079 square foot freestanding Taco Bell located at 846 Highway 51 North in Ripley, Tennessee. Located on US Highway 51 North a four-lane divided highway as an outparcel to a Wal-Mart Super Center hosting grocery, pharmacy and garden centers this property is adjacent to an Advance Auto, KFC, McDonald’s and Pizza Hut/Wing Street
Investment Highlights ›› Average Daily Traffic Counts on Highway 51 North total 17,910 ›› Price is below replacement cost ›› Debt Service Coverage Ratio: 2.16 ›› Leveraged IRR: 17.01% ›› Average Cap Rate During Lease: 9.01% ›› One of the six cities selected in Tennessee for downtown revitalization project ›› Increasing store sales past two years ›› 2010 Rent-to-Sales Ratio 8.89%
Financial Analysis
Financial analysis Taco Bell
Financial Summary
Property
Loan
Name:
Taco Bell
Loan Type:
Proposed
846 Highway 51 North Address: Building Size (SF): Lot Size (Acres): Rent Increases:
Ripley, TN 38063
Loan Amount:
2,079
Interest Rate:
6.10%
0.66
Amortization:
25
8% every 5 years
Year Built:
1999
Price:
$
Cap Rate:
945,416 8.00%
Due in:
colliers international
40%
LTV:
60%
Type of Ownership:
Fee Simple
Annualized Operating Data
$
454.75
Down Payment:
$
378,167
Year 1 $
75,633
$
75,633
Pro Forma Cap Rate (2016):
8.64%
Net Operating Income:
Average Cap Rate:
9.01%
(Less Debt Service)
2.16
Total
Base Rent (occupied space):
Net CF after Debt Service
($44,797) $
30,837 10,194
Discount Rate:
8.00%
% Return
IRR:
17.01%
Principal Reduction:
$
Total Return
$
Building Value (80%):
$
756,333
Depreciation:
$
19,148
% Return
Lease Commencement:
Taxable Income
p. 7
5
Down Payment Percentage:
Pricing Summary Price/SF:
Debt Service Coverage Ratio:
$ 567,250
8.15% 41,031 10.85%
Proposed Lease Summary
NOI:
$
75,633
(Less Loan Interest)
$
(34,602)
Lease Term (yrs):
(Less Depreciation)
$
(19,148)
Lease Termination:
Taxable Income:
$
21,883
Options:
Upon COE 20 2031 Four 5-year
financial analysis Taco Bell
Cash Flow Analysis Cash Flow Analysis: Investment Years
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Lease Years
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Base Rent (occupied space):
$
75,633
$
75,633
$
75,633
$
75,633
$
75,633
$
81,684
$
81,684
$
81,684
$
81,684
$
81,684
Net Operating Income:
$
75,633
$
75,633
$
75,633
$
75,633
$
75,633
$
81,684
$
81,684
$
81,684
$
81,684
$
81,684
Less Debt Service:
$ (44,797) $
Net CF after Debt Service:
$
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797)
(378,167) $
30,837
$
30,837
$
30,837
$
30,837
$
30,837
$
36,887
$
36,887
$
36,887
$
36,887
$
36,887
$
10,194
$
10,816
$
11,476
$
12,176
$
12,919
$
13,707
$
14,543
$
15,430
$
16,371
$
17,370
$
51,430
$
52,317
$
53,259
$
54,257
Principal Reduction: Cap Rate
8.00%
Total Return
$
Total Return Percentage:
41,031
8.64% $
10.85%
41,653
$
11.01%
42,313
$
11.19%
43,013
$
11.37%
43,755
$
11.57%
50,594 13.38%
13.60%
13.83%
14.08%
14.35%
Loan Amortization Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Interest
$
34,602
$
33,980
$
33,321
$
32,621
$
31,878
$
31,090
$
30,254
$
29,367
$
28,425
$
27,427
Principal Reduction
$
10,194
$
10,816
$
11,476
$
12,176
$
12,919
$
13,707
$
14,543
$
15,430
$
16,371
$
17,370
$ 509,668
$ 495,961
$
481,418
Year 5
Year 6
Balance Debt Service
$
567,250
$ 557,055
$ 546,239
$ 534,763
$ 522,587
$ 465,988
$ 449,617
$ 432,247
Year 8
Year 9
Year 10
($44,797)
Taxable Income: Year 1
$
$ (34,602) $ (33,980) $
(33,321) $
(32,621) $
(31,878) $
(31,090) $ (30,254) $
(29,367) $ (28,425) $
(27,427)
(Less Depreciation)
$
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148)
Taxable Income:
$
21,883
22,505
23,165
23,865
24,608
31,447
32,283
33,170
$
75,633
$
$
75,633
$
$
75,633
$
$
81,684
Year 7
(Less Loan Interest)
$
75,633
Year 4
$
colliers international
$
Year 3
Net Operating Income:
p. 8
75,633
Year 2
$
$
81,684
$
$
81,684
$
$
81,684
$
(19,148) $ 34,111
$
81,684
35,110
Tenant Overview
Tenant summary Taco Bell
Tenant Name: BBG North Lease Commencement: Upon COE Lease Expiration: 2031 Original Lease Term: 20 years Option Term: Four 5-year Rent Increases: 8% every 5 Gross Leaseable Area: 1,875 SF Headquartered: New York No. of Locations: 30 Performance of the lease shall be guarnteed by a 30 unit multi-state franchisee of Taco Bell and KFC.
2nd most profitable QSR brand in the U.S., with a 54% share of the Mexican QSR
›› Taco Bell is the
Lease Summary Lease Years
Annual Rent
1-5
$75,633
6-10
base rent Monthly Rent
category. Monthly Rent / SF
rent Increase (8%)
$6,303
$3.03
-
$81,684
$6,807
$3.27
$6,051
11-15
$88,218
$7,352
$3.54
$6,535
16-20
$95,276
$7,940
$3.82
$7,057
option rent
p. 10
Lease Years
Annual Rent
Monthly Rent
Monthly Rent / SF
rent Increase (8%)
21-25
$102,898
$8,575
$4.12
$7,622
26-30
$111,130
$9,261
$4.45
$8,232
31-15
$120,020
$10,002
$4.81
$8,890
36-40
$129,622
$10,802
$5.20
$9,602
colliers international
›› The Taco Bell system operates in 14 countries and territories throughout the world ›› In 2007 had
$6.1 billion in domestic
system wide sales, including $4.4 billion from franchisee owned restaurants ›› Taco Bell, contributes about
55% of
operating profits domestically in 2007. ›› It is the
2nd most profitable concept in
the U.S. behind McDonald’s.
tenant overview Taco Bell
Yum Brands Information A unit of fast-food behemoth YUM! Brands, Taco Bell is the #1 Mexican fastfood chain in the US, with more than 5,600 locations. Additionally, Taco Bell Corp., (“TBC”) based in Irvine, California, is the largest Mexicanstyle quick service restaurant in the world. Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries. Consequently, the company is ranked #239 on the Fortune 500 List, with nearly $11 billion in revenue in 2009.
Financial News ›› Yum Brands’ approved a 19% increase in its dividend on 9/14/10, sending the company’s stock to a 52-week high of $46.25. ›› Yum reported Q2 earnings per share of $0.58, beating the Zacks Consensus Estimate by 4 cents as earnings grew 17% year-over-year. ›› Yum’s CFO Rick Carucci recently stated: “We currently have almost two times the number of emerging market units as McDonald’s, and we have added more net units than McDonald’s at a 3 to 1 rate during the past five years”
Yum! Brands is Among the Companies in the Restaurants Industry With the Highest Return on Equity (YUM, TAST, CBRL, MCD, CEC) 1. Yum! Brands: 132.6% 2. Carrols Restaurant Group: 49.8% 3. Cracker Barrel: 47.6% . 4. McDonald’s: 36.3% 5. CEC Entertainment:32.6%.
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colliers international
Property Overview
property overview Taco Bell
Site Description Address:
846 Highway 51 North | Ripley, TN 38063
Year Built:
1999
Gross Leaseable Area:
2,079 SF
Lot Size:
0.66 acres
Type of Ownership:
Fee Simple
Property Photographs
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colliers international
property overview Taco Bell
Adjacent Property Photographs
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colliers international
property overview Taco Bell
Property Aerial 51
SUBJECT PROPERTY
38
p. 15
colliers international
property overview Taco Bell
Local Map
Subject Property
p. 16
colliers international
property overview Taco Bell
Regional Map
Subject Property
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colliers international
Market & Area overview
market & area overview Taco Bell
Population 1 - Mile
3 - Miles
5 - Miles
Estimated Population (2010)
618
8,279
12,631
Census Population (2000)
579
8,490
12,979
1990-2000
9.45%
8.61%
9.46%
2000 Average HH Income
$30,713
$35,230
$35,382
10 - Mile
15 - Miles
20 - Miles
Estimated Population (2010)
21,030
34,386
64,932
Census Population (2000)
21,444
34,679
65,962
1990-2000
9.98%
12.57%
10.64%
2000 Average HH Income
$36,721
$36,892
$39,033
Historical Annual Growth
Population
Historical Annual Growth
Ripley, TN is centrally located in North West Tennessee. As one of the six cities selected in Tennessee for downtown revitalization, extensive work is being done around the town square and adjacent areas. Work began in the fall of 2008 and the courthouse square was completed in May 2010.
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colliers international
market & area overview
Market & Area Overview
Taco Bell
On the Market Comparables Taco Bell - 123 E. Linwood Blvd, Kansas City, MO 64111 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,875,000 2,699 $694.70 n/a 8.00%
Taco Bell - 1373 Georgia Highway 40 East, Kingsland, GA 31548 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,215,000 2,162 $561.98 n/a 7.40%
Taco Bell - 2512 E. Sunset Road, Las Vegas, NV 89120 Price: Building SF: Price/SF: Year Built: Cap Rate:
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colliers international
$2,125,000 2,375 $894.74 2000 8.00%
Taco Bell - 21196 Highway 71 South, Pineville, MO 64856 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,325,000 1,913 $692.63 2010 7.77%
Taco Bell - 200 N. Wilson Road, Columbus, OH 43204 Price: Building SF: Price/SF: Year Built: Cap Rate:
$600,000 1,972 $304.26 1991 7.76%
Market & Area Overview
market & area overview Taco Bell
On the Market Comparables
On-Market Cap Rates
On-Market Price per Square Foot
8.10%
$1,000.00
8.00%
$900.00
7.90%
$800.00
7.80%
$700.00
7.70%
$600.00 7.60% Comp's
$500.00
Comp's
Avg
7.50%
Avg $400.00
7.40%
$300.00
7.30%
$200.00
7.20%
$100.00
7.10%
$Columbus, OH
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colliers international
Subject Property
Kingsland, GA
Pineville, MO
Kansas City, MO
Las Vegas, NV
Shawn Bakke Senior Vice President License No. 01326433 213.532.3282 [email protected]
Gregory Ching Project Coordinator 213.532.3209 [email protected]
865 S. Figueroa Street Suite 3500 Los Angeles, CA 90017 213.627.1214 www.colliers.com
Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2010. All rights reserved.
Taco Bell
*actual photo
846 Highway 51 North | Ripley, TN | 38063
Shawn Bakke Senior Vice President License No. 01326433 213.532.3282 [email protected]
Gregory Ching Project Coordinator 213.532.3209 [email protected]
865 S. Figueroa Street Suite 3500 Los Angeles, CA 90017 213.627.1214 www.colliers.com
Confidentiality & disclaimer Taco Bell
This Offering Memorandum contains select information pertaining to the business and affairs of Taco Bell. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole
discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Taco Bell or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
865 S. Figueroa Street, Suite 3500 Los Angeles, CA 90017 P: 213.627.1214 www.colliers.com
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colliers international
Table of Contents Executive Summary
5
›› Pricing Summary ›› Investment Highlights
Financial Analysis
7
›› Financial Summary ›› Cash Flow Analysis
Tenant Overview
10
›› Tenant & Lease Summaries
Property Overview ›› ›› ›› ›› ››
Site Summary Property Photos Adjacent Property Photos Property Aerial Local & Regional Maps
Market & Area Overview ›› Demographics ›› Area Description ›› On the Market Comparables
p. 3
colliers international
13
19
Executive Summary
Pricing Summary Property
Taco Bell
Property Address
846 Highway 51 North | Ripley, TN
Building Size (SF) Lot size (Acres) Year Built Price / price psf Down Payment Cap Rate / pro forma (2016) average cap during lease leveraged irr
2,079 0.66 1999 $954,416 / $454.75 $390,365 8.00% / 8.64% 9.01% 17.01%
Proposed Financing - First Trust Deed Loan Amount Loan Type Interest Rate Amortization Program Loan to Value
$567,250 Proposed New 6.10% 25 Due in 5 60:40
Annualized Operating Data Base Rent - Occupied Space Net Operating Income Debt Service Net Cash Flow After Debt Service Principal reduction Total Return
p. 5
colliers international
$75,633 $75,633 ($44,797) $30,837 / 8.15% $10,194 $41,031 / 10.85%
Investment Summary Colliers International presents a 2,079 square foot freestanding Taco Bell located at 846 Highway 51 North in Ripley, Tennessee. Located on US Highway 51 North a four-lane divided highway as an outparcel to a Wal-Mart Super Center hosting grocery, pharmacy and garden centers this property is adjacent to an Advance Auto, KFC, McDonald’s and Pizza Hut/Wing Street
Investment Highlights ›› Average Daily Traffic Counts on Highway 51 North total 17,910 ›› Price is below replacement cost ›› Debt Service Coverage Ratio: 2.16 ›› Leveraged IRR: 17.01% ›› Average Cap Rate During Lease: 9.01% ›› One of the six cities selected in Tennessee for downtown revitalization project ›› Increasing store sales past two years ›› 2010 Rent-to-Sales Ratio 8.89%
Financial Analysis
Financial analysis Taco Bell
Financial Summary
Property
Loan
Name:
Taco Bell
Loan Type:
Proposed
846 Highway 51 North Address: Building Size (SF): Lot Size (Acres): Rent Increases:
Ripley, TN 38063
Loan Amount:
2,079
Interest Rate:
6.10%
0.66
Amortization:
25
8% every 5 years
Year Built:
1999
Price:
$
Cap Rate:
945,416 8.00%
Due in:
colliers international
40%
LTV:
60%
Type of Ownership:
Fee Simple
Annualized Operating Data
$
454.75
Down Payment:
$
378,167
Year 1 $
75,633
$
75,633
Pro Forma Cap Rate (2016):
8.64%
Net Operating Income:
Average Cap Rate:
9.01%
(Less Debt Service)
2.16
Total
Base Rent (occupied space):
Net CF after Debt Service
($44,797) $
30,837 10,194
Discount Rate:
8.00%
% Return
IRR:
17.01%
Principal Reduction:
$
Total Return
$
Building Value (80%):
$
756,333
Depreciation:
$
19,148
% Return
Lease Commencement:
Taxable Income
p. 7
5
Down Payment Percentage:
Pricing Summary Price/SF:
Debt Service Coverage Ratio:
$ 567,250
8.15% 41,031 10.85%
Proposed Lease Summary
NOI:
$
75,633
(Less Loan Interest)
$
(34,602)
Lease Term (yrs):
(Less Depreciation)
$
(19,148)
Lease Termination:
Taxable Income:
$
21,883
Options:
Upon COE 20 2031 Four 5-year
financial analysis Taco Bell
Cash Flow Analysis Cash Flow Analysis: Investment Years
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Lease Years
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Base Rent (occupied space):
$
75,633
$
75,633
$
75,633
$
75,633
$
75,633
$
81,684
$
81,684
$
81,684
$
81,684
$
81,684
Net Operating Income:
$
75,633
$
75,633
$
75,633
$
75,633
$
75,633
$
81,684
$
81,684
$
81,684
$
81,684
$
81,684
Less Debt Service:
$ (44,797) $
Net CF after Debt Service:
$
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797) $
(44,797)
(378,167) $
30,837
$
30,837
$
30,837
$
30,837
$
30,837
$
36,887
$
36,887
$
36,887
$
36,887
$
36,887
$
10,194
$
10,816
$
11,476
$
12,176
$
12,919
$
13,707
$
14,543
$
15,430
$
16,371
$
17,370
$
51,430
$
52,317
$
53,259
$
54,257
Principal Reduction: Cap Rate
8.00%
Total Return
$
Total Return Percentage:
41,031
8.64% $
10.85%
41,653
$
11.01%
42,313
$
11.19%
43,013
$
11.37%
43,755
$
11.57%
50,594 13.38%
13.60%
13.83%
14.08%
14.35%
Loan Amortization Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Interest
$
34,602
$
33,980
$
33,321
$
32,621
$
31,878
$
31,090
$
30,254
$
29,367
$
28,425
$
27,427
Principal Reduction
$
10,194
$
10,816
$
11,476
$
12,176
$
12,919
$
13,707
$
14,543
$
15,430
$
16,371
$
17,370
$ 509,668
$ 495,961
$
481,418
Year 5
Year 6
Balance Debt Service
$
567,250
$ 557,055
$ 546,239
$ 534,763
$ 522,587
$ 465,988
$ 449,617
$ 432,247
Year 8
Year 9
Year 10
($44,797)
Taxable Income: Year 1
$
$ (34,602) $ (33,980) $
(33,321) $
(32,621) $
(31,878) $
(31,090) $ (30,254) $
(29,367) $ (28,425) $
(27,427)
(Less Depreciation)
$
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148) $
(19,148)
Taxable Income:
$
21,883
22,505
23,165
23,865
24,608
31,447
32,283
33,170
$
75,633
$
$
75,633
$
$
75,633
$
$
81,684
Year 7
(Less Loan Interest)
$
75,633
Year 4
$
colliers international
$
Year 3
Net Operating Income:
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75,633
Year 2
$
$
81,684
$
$
81,684
$
$
81,684
$
(19,148) $ 34,111
$
81,684
35,110
Tenant Overview
Tenant summary Taco Bell
Tenant Name: BBG North Lease Commencement: Upon COE Lease Expiration: 2031 Original Lease Term: 20 years Option Term: Four 5-year Rent Increases: 8% every 5 Gross Leaseable Area: 1,875 SF Headquartered: New York No. of Locations: 30 Performance of the lease shall be guarnteed by a 30 unit multi-state franchisee of Taco Bell and KFC.
2nd most profitable QSR brand in the U.S., with a 54% share of the Mexican QSR
›› Taco Bell is the
Lease Summary Lease Years
Annual Rent
1-5
$75,633
6-10
base rent Monthly Rent
category. Monthly Rent / SF
rent Increase (8%)
$6,303
$3.03
-
$81,684
$6,807
$3.27
$6,051
11-15
$88,218
$7,352
$3.54
$6,535
16-20
$95,276
$7,940
$3.82
$7,057
option rent
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Lease Years
Annual Rent
Monthly Rent
Monthly Rent / SF
rent Increase (8%)
21-25
$102,898
$8,575
$4.12
$7,622
26-30
$111,130
$9,261
$4.45
$8,232
31-15
$120,020
$10,002
$4.81
$8,890
36-40
$129,622
$10,802
$5.20
$9,602
colliers international
›› The Taco Bell system operates in 14 countries and territories throughout the world ›› In 2007 had
$6.1 billion in domestic
system wide sales, including $4.4 billion from franchisee owned restaurants ›› Taco Bell, contributes about
55% of
operating profits domestically in 2007. ›› It is the
2nd most profitable concept in
the U.S. behind McDonald’s.
tenant overview Taco Bell
Yum Brands Information A unit of fast-food behemoth YUM! Brands, Taco Bell is the #1 Mexican fastfood chain in the US, with more than 5,600 locations. Additionally, Taco Bell Corp., (“TBC”) based in Irvine, California, is the largest Mexicanstyle quick service restaurant in the world. Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries. Consequently, the company is ranked #239 on the Fortune 500 List, with nearly $11 billion in revenue in 2009.
Financial News ›› Yum Brands’ approved a 19% increase in its dividend on 9/14/10, sending the company’s stock to a 52-week high of $46.25. ›› Yum reported Q2 earnings per share of $0.58, beating the Zacks Consensus Estimate by 4 cents as earnings grew 17% year-over-year. ›› Yum’s CFO Rick Carucci recently stated: “We currently have almost two times the number of emerging market units as McDonald’s, and we have added more net units than McDonald’s at a 3 to 1 rate during the past five years”
Yum! Brands is Among the Companies in the Restaurants Industry With the Highest Return on Equity (YUM, TAST, CBRL, MCD, CEC) 1. Yum! Brands: 132.6% 2. Carrols Restaurant Group: 49.8% 3. Cracker Barrel: 47.6% . 4. McDonald’s: 36.3% 5. CEC Entertainment:32.6%.
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colliers international
Property Overview
property overview Taco Bell
Site Description Address:
846 Highway 51 North | Ripley, TN 38063
Year Built:
1999
Gross Leaseable Area:
2,079 SF
Lot Size:
0.66 acres
Type of Ownership:
Fee Simple
Property Photographs
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colliers international
property overview Taco Bell
Adjacent Property Photographs
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colliers international
property overview Taco Bell
Property Aerial 51
SUBJECT PROPERTY
38
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colliers international
property overview Taco Bell
Local Map
Subject Property
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property overview Taco Bell
Regional Map
Subject Property
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colliers international
Market & Area overview
market & area overview Taco Bell
Population 1 - Mile
3 - Miles
5 - Miles
Estimated Population (2010)
618
8,279
12,631
Census Population (2000)
579
8,490
12,979
1990-2000
9.45%
8.61%
9.46%
2000 Average HH Income
$30,713
$35,230
$35,382
10 - Mile
15 - Miles
20 - Miles
Estimated Population (2010)
21,030
34,386
64,932
Census Population (2000)
21,444
34,679
65,962
1990-2000
9.98%
12.57%
10.64%
2000 Average HH Income
$36,721
$36,892
$39,033
Historical Annual Growth
Population
Historical Annual Growth
Ripley, TN is centrally located in North West Tennessee. As one of the six cities selected in Tennessee for downtown revitalization, extensive work is being done around the town square and adjacent areas. Work began in the fall of 2008 and the courthouse square was completed in May 2010.
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colliers international
market & area overview
Market & Area Overview
Taco Bell
On the Market Comparables Taco Bell - 123 E. Linwood Blvd, Kansas City, MO 64111 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,875,000 2,699 $694.70 n/a 8.00%
Taco Bell - 1373 Georgia Highway 40 East, Kingsland, GA 31548 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,215,000 2,162 $561.98 n/a 7.40%
Taco Bell - 2512 E. Sunset Road, Las Vegas, NV 89120 Price: Building SF: Price/SF: Year Built: Cap Rate:
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colliers international
$2,125,000 2,375 $894.74 2000 8.00%
Taco Bell - 21196 Highway 71 South, Pineville, MO 64856 Price: Building SF: Price/SF: Year Built: Cap Rate:
$1,325,000 1,913 $692.63 2010 7.77%
Taco Bell - 200 N. Wilson Road, Columbus, OH 43204 Price: Building SF: Price/SF: Year Built: Cap Rate:
$600,000 1,972 $304.26 1991 7.76%
Market & Area Overview
market & area overview Taco Bell
On the Market Comparables
On-Market Cap Rates
On-Market Price per Square Foot
8.10%
$1,000.00
8.00%
$900.00
7.90%
$800.00
7.80%
$700.00
7.70%
$600.00 7.60% Comp's
$500.00
Comp's
Avg
7.50%
Avg $400.00
7.40%
$300.00
7.30%
$200.00
7.20%
$100.00
7.10%
$Columbus, OH
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colliers international
Subject Property
Kingsland, GA
Pineville, MO
Kansas City, MO
Las Vegas, NV
Shawn Bakke Senior Vice President License No. 01326433 213.532.3282 [email protected]
Gregory Ching Project Coordinator 213.532.3209 [email protected]
865 S. Figueroa Street Suite 3500 Los Angeles, CA 90017 213.627.1214 www.colliers.com
Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2010. All rights reserved.
